Panasonic Corp. revealed plan to exit solar cell production at Tesla Inc’s New York plant. Until today Panasonic was the main supplier of the Tesla in USA. Few weeks ago, Tesla showed plans to cooperate with Chinese company which will make the batteries for Tesla cars. This theory supports also another sign of a fraying partnership with the U.S. EV maker, which is set to diversify its battery supplies to include South Korea’s LG Chem Ltd and China’s Contemporary Amperex Technology Ltd. The move increases uncertainty over Tesla’s solar business, which is already under scrutiny, having been drastically scaled back since the U.S. firm bought it for $2.6 billion in 2016.

The withdrawal comes as Panasonic scrambles to divest of unprofitable businesses as its strategic shift to components from consumer electronics struggles to drive profit growth.

Tesla has informed mainly to make certain about their company, that Panasonic’s withdrawal “has no bearing on Tesla’s current operations”, the state said in a statement. The company currently employs over 1,500 jobs in the city of Buffalo, clearing its 1,460 commitment before April – and thereby avoiding a $41 million penalty.